HILLCREST  A nonprofit criticized for the way it managed money from parking meters in Hillcrest, Mission Hills and other Uptown neighborhoods will undergo a dramatic reorganization, under a plan approved this month by the group’s board of directors.

The Uptown Partnership, which manages revenue for the Uptown Community Parking District, made important strides in responding to critiques from community groups and elected officials, board President Dave Gatzke said. But when the San Diego City Council in September called for further changes — opting to approve a three-month contract rather than a one-year pact — "we realized that fundamental change is the only answer,” he said.

The board elected to sever ties with the city as of Dec. 29, Gatzke said. “Rather than continue to make incremental changes … this was the way to wipe the slate clean.”

Uptown Partnership’s board agreed to hire a consultant to work with city officials and community members to restructure the parking district. Nancy Moors, board president of the Hillcrest Business Association, said she was satisfied with the outcome, particularly after Uptown Partnership agreed to have no part in selecting or managing the consultant.

“I believe it was the right thing to do and I respect the board for acknowledging that,” said Moors, herself a former board member. “Recent appointees realized that once they got on the board they weren’t getting anything done. And others who had been there for a long time were tired for some of the same reasons.”

Uptown Partnership has served as the official advisory board for the community parking district since 1997. The city has approved annual contracts for the group to invest money from parking meters in Hillcrest, Bankers Hill and Mission Hills, Park West and Five Points to improve parking and traffic.

The group ran into trouble when some communities decried a lack of board representation. Others complained that their districts received less attention than they should have given the amounts they contributed. Several community groups came together this month to vote no confidence in the parking district.

High-profile resignations were followed by a stinging report from a county grand jury. It found that Uptown Partnership spent three times more on operating expenses than on projects since incorporating in 1999.

“What you had was an organization that went wild with its arrogance and stunning lack of accountability,” said Leo Wilson, chairman of Uptown Planners and the Bankers Hill/Park West Community Association. “It’s as if they set out to invest in a bureaucracy rather than invest in parking.”

The group dedicated $3.2 million to operating expenses and $1.1 million to projects, according to the grand jury report released in May. It stashed away about $4.3 million in reserves while creating 40 to 50 parking spaces, though officials were in discussions to add an additional 90 spaces over two years.

Representatives said a lot of time and resources were wasted on a parking garage in Hillcrest that never came to fruition because of the city’s sinking bond rating. The group did expand its board of directors and establish term limits, Executive Director Carol Schultz said.

Its final initiatives include a program that would make it easier for merchants to offer universal validation at various parking lots in Hillcrest; bicycle corrals in Bankers Hill/Park West and possibly the rest of Uptown; and opening up new parking spaces at 215 W. Washington Street, the site of the proposed Mission Hills Library.

Still, none of it would be enough. Shultz and her staff of three employees have received layoff notices and will stop selling parking meter cards after Dec. 17.

Upcoming discussions are expected to focus on the viability of running a parking district without a paid staff or brick-and-mortar location. A representative for Councilman Kevin Faulconer said the councilman was concentrating on making sure taxpayer funds are used efficiently to create more parking.